1. State of Standards and Standards in Development Sean Cavote, Manager of Standards Development WECC Operating Committee Meeting March 26, 2015

2. RELIABILITY | ACCOUNTABILITY2 Identified 26 projects to be completed in 2014 Four projects were added after plan was developed Twelve projects, or portions of projects, were extended into 2015 Status of 2014-2016 Reliability Standards Development Plan

3. RELIABILITY | ACCOUNTABILITY3 Progress on FERC Directives

4. RELIABILITY | ACCOUNTABILITY4 Progress on Paragraph 81 and Independent Experts Review Panel (IERP)

5. RELIABILITY | ACCOUNTABILITY5 Progress on Paragraph 81 and Independent Experts Review Panel (IERP)

6. RELIABILITY | ACCOUNTABILITY6 2014-02 CIP V5 Revisions 2014-03 TOP/IRO Revisions 2014-01 DGR medium priority 2007-06 Protection System Coordination - PRC-027 2007-06.2 PRC-001 2008-02 UVLS (PRC-004) 2010-14.1 BAL-005 and BAL-006 2010-14.2 BAL-004 periodic review 2012-09 Implementation of IRO Periodic Review (IRO-006 and IRO-009) 2014-04 Physical Security Directives 2009-02 Real-time Monitoring and Analysis 2010-05.2 Phase 2 of Protection System Misoperations: RAS 2014 Projects Continuing Into 2015

7. RELIABILITY | ACCOUNTABILITY7 Critical Infrastructure Protection Standards Version 5  Addressed five FERC directives  Adopted five standards: CIP-003-6, CIP-004-6, CIP-007-6, CIP-010-2, CIP- 011-2  Filed February 13, 2015 Dispersed Generation Resources  High priority DGR standards previously Board approved and pending filing at FERC  Adopted three standards: PRC-001-1.1(ii), PRC-019-2, PRC-024-2  Filed March 13, 2015 Revisions to TOP/IRO Standards  Eight standards previously adopted  Adopted one standard: TOP-001-3  Filed March 18, 2015 February 2015 Board Actions

8. RELIABILITY | ACCOUNTABILITY8 2014-04 Physical Security Directives (Order No. 804 directive) 2015-01 TPL Directives 2015-02 EOP-004, -005, -006 and -008 Periodic Review 2015-03 FAC-010, -011 and -014 Periodic Review 2015-04 Alignment of Glossary and ROP Terms 2007-17.4 PRC-005 Order No. 803 Directive 2010-04.1 MOD-031 Order No. 804 Directive 2015 New Projects

9. RELIABILITY | ACCOUNTABILITY9 Four new standards projects  2015-02 – Emergency Operations Periodic Review  2015-03 – Periodic Review of System Operating Limit Standards  2015-04 – Alignment of Glossary and Rules Of Procedure (ROP) Terms  2007-06.2 – System Protection Coordination Teams began meeting in February 2015 Expected to complete in 2015 Robust outreach effort 2015 RSDP Projects First Quarter 2015

10. RELIABILITY | ACCOUNTABILITY10 FERC Order No. 804 directive on CIP-014-1  Remove the term “widespread” or propose modifications  Six-month deadline  Requires informational filing on “High Impact” control centers Team meeting January 2015 Preliminary recommendations  Remove the term “widespread” from: o Purpose Statement o Background Section o Requirement R1 and the Rationale for Requirement R1 o The Guidelines and Technical Basis Section of the standard  Add guidance for Requirement R1 Project 2014-04 Physical Security

11. RELIABILITY | ACCOUNTABILITY11 The posting runs February 20 to April 9, 2015  45-day comment and initial ballot period Assuming a successful ballot, the standard will be presented to the NERC Board of Trustees in May, 2015 for adoption and subsequent filing with FERC The project has a deadline of July 27, 2015 to file a petition with FERC that addresses the directive Contact Senior Developer stephen.crutchfield@nerc.netstephen.crutchfield@nerc.net Project 2014-04 Physical Security

12. RELIABILITY | ACCOUNTABILITY12 Periodic review of EOP-004, EOP-005, EOP-006, EOP-008 Team meeting and technical conference February 2015 Initial posting expected April 2015 Preliminary recommendations  EOP-004-2 o Revise Attachment 1 to improve clarity  EOP-005-2 o Reaffirm Requirements R7, R8, and R12 o Revise Requirement R6 –Add a Rationale Box to clarify “dynamic simulations” o Withdraw Requirement R10 –Duplicative of proposed PER-005-2 Project 2015-02 Emergency Operations Periodic Review

13. RELIABILITY | ACCOUNTABILITY13 Preliminary recommendations (continued)  EOP-006-2 o Reaffirm Requirements R7, R8, R10 o Revise Requirement R1 –Unnecessary action o Withdraw requirements R1 (three subparts) and R9 –Duplicative and redundant  EOP-008-1 o Revise Requirement R1 –Add clarity to the intended timeframe to restore primary control center functionality Contact Developer laura.anderson@nerc.netlaura.anderson@nerc.net Project 2015-02 Emergency Operations Periodic Review

14. RELIABILITY | ACCOUNTABILITY14 Industry webinar and team meeting March 2015 Initial posting expected April 2015 Standard drafting team objectives  Modify requirements to PRC-001-1.1  Address FERC directives in Order No. 693  Consider appropriate applicable entities  Requirements o Focus on the reliability aspects o Eliminate ambiguity o Identify other similar standards and requirements o Consider if appropriate for the PRC family of standards o Improve measurability Project 2007-06.2 – System Protection Coordination

15. RELIABILITY | ACCOUNTABILITY15 SDT Approach  Requirement R1 – Knowledge o SDT anticipates moving R1 to TOP-001-3  Requirement R2 – Notification of failures (i.e., degradation) o SDT anticipates moving R2 to TOP-001-3 (Transmission Operations)  Requirement R5 – Communicating in advance (i.e., planning ahead) o SDT anticipates moving R5 to TOP-002-4 (Operational Planning)  Requirement R6 – Monitoring and communicating status changes of Special Protection Systems o Considering retiring R6 since it appears other standards cover it Contact Developer scott.barfield@nerc.netscott.barfield@nerc.net Project 2007-06.2 – System Protection Coordination

16. RELIABILITY | ACCOUNTABILITY16 April 1, 2015  BAL-003-1  EOP-010-1 (GMD)  PRC-005-2 July 1, 2015  MOD-032-1 October 1, 2015  CIP-014-1 (Physical Security) January 1, 2016  FAC-001-2  FAC-002-2  NUC-001-3  TPL-001-4 requirements 2-6, 8 April 1, 2016  CIP V5 July 1, 2016  MOD-025-2  PER-005-2  PRC-019-1  PRC-024-1 July 1, 2017  MOD-033-1 Standards Subject to Future Enforcement

17. RELIABILITY | ACCOUNTABILITY17 Deliberate pace of standards development  Response to industry, NERC Board of Trustees, and NERC Standards Committee  Relieve strain on scarce NERC and industry resources  Stagger postings and ballots for standards as well as presentations to the NERC Board for Adoption Steady State Standards  Largely complete in 2015 Enhanced Periodic Reviews  Third or fourth quarter 2015 2015 Trends and Expectations

18. RELIABILITY | ACCOUNTABILITY18 PMOS Annual Planning Calendar

19. RELIABILITY | ACCOUNTABILITY19 Progress to Steady State February (3)  2014-02 CIP V5 Revisions  2014-03 TOP/IRO Revisions  2014-01 DGR medium priority May (3)  2008-02 UVLS (PRC-004)  2014-01 DGR medium priority  2014-04 Physical Security Directives August (3)  2010-14.2 BAL-004 periodic review  2015-02 EOP-004, -005, -006 and - 008 periodic review  2007-17.4 PRC-005 Order No. 803 Directive

20. RELIABILITY | ACCOUNTABILITY20 Progress to Steady State November (7)  2010-14.1 BAL-005 and BAL-006  2012-09 Implementation of IRO Periodic Review (IRO-006 and IRO-009)  2015-03 FAC-010, -011 and -014 periodic review  2015-04 Alignment of Glossary and ROP Terms  2007-06.2 PRC-001  2010-04.1 MOD-031 Order No. 804 Directives  2007-06 Protection System Coordination (PRC-027) 2016 (2)  2009-02 Real-time Monitoring and Analysis  2010-05.2 Phase 2 of Protection System Misoperations: RAS

21. RELIABILITY | ACCOUNTABILITY21 Measured, in-depth review to improve quality and content of standards Look for opportunities to make standards more concise  Verify content is appropriate to be included in a standard  Builds on Independent Experts’ work with industry input Plan to be developed by end of Q2 2015  Topic will be discussed at the May NERC Board and Member Representatives Committee meetings forpolicy input discussion No mandated timeline Enhanced Periodic Reviews

22. RELIABILITY | ACCOUNTABILITY22 Recognizes current trend at NERC  Smaller drafting and review teams of 6-10 members  Active observers  Engaged industry throughout standard development process Essential part of standards development  The ballot is an inefficient barometer of industry position  Ad hoc groups have more influence early in the process  Teams often more receptive to comments during early phases of development  Communication bond among industry, teams, NERC, and FERC Industry Outreach

23. RELIABILITY | ACCOUNTABILITY23 Sean Cavote North American Electric Reliability Corporation 3353 Peachtree Road NE, Suite 600 – North Tower Atlanta, GA 30326 404.446.9697 (O) 404.694.6935 (C) sean.cavote@nerc.net Contact

24. RELIABILITY | ACCOUNTABILITY24